AHDB Pork Weekly Export Bulletin

AHDB Pork Weekly Export Bulletin - 24 August 2015

Anuga will take place from 10 to 14 October. A record 850 meat companies will exhibit their products over 55,000sqm. AHDB will be present on a 240sqm pavilion at the heart of the fresh meat hall (6.1 – stand 40-41). The pavillion will include eight exporters’ booths. The British Meat Dinner will take place on Monday 12 October at the Wolkenburg. Please note that we have limited availability.

Following a week without sales at MPB in Plérin, a special sale was organised on Tuesday 18 August. The sale started without the two major players Bigard-Socopa and Cooperl Arc Atlantique, who together represent a third of the total pig market in France. Together, the two operators represent 10 million pigs and export almost a third of their production, hence their wish for a free market price. On Tuesday, the session ended with a price at €1.389 per kg, well above the base (removal) price of €1.37 per kg. However, this was below the €1.40 per kg price agreed by all parts of the industry (including Bigard and Cooperl) and the Ministry of Agriculture back in June. Although they were missing on Tuesday, Cooperl and Bigard were allocated their quotas. Out of the 49,389 pigs presented on Tuesday, 15,748 were not sold. Cooperl met the Minister on Tuesday with Coop de France (Federation of French cooperatives) to discuss emergency compensatory measures to alleviate unfair competition with other European industries. Cooperl confirmed they would not return to MPB unless fundamental changes are in place in terms of fixing a standard price.

Mr Le Foll is suggesting a standard contract would take into account production cost with a necessary margin put in place. The Minister also suggested that the minimum amount for a public call to tender is raised from €15,000 to €25,000 so that more local authorities can buy local pig meat. Bigard will meet the Minister on Wednesday. Finally, Guillaume Roué said that the technicalities of MPB’s price system need to be adapted. On the ground, producers are still active, they request strict origin labelling on all processed products. Their latest findings in store include Chinese rabbit at the “préfecture” in Rouen and imported meat and milk at a Lidl depot in Northern France. They are unlikely to release their pressure until after a national demonstration on 3 September in Paris and a European demonstration in Brussels on 7 September.

Denmark

Poor image of porkDespite high consumption and numerous campaigns, Danish people still rate pork as unhealthy and fatty. In particular, younger consumers prefer chicken or beef. Some 88% of Danes rate fish as “healthy” against 69% for chicken, 51% for eggs, 25% for beef and only 14% for pork. (Source, LF)

Netherlands

Difficult situation for producersProducers’ organisations PVO and COV have asked for subsidies for relief from the current crisis and have requested action from Minister Dijksma prior to the Brussels Agricultural Council on 7 September. (Source, Boerderij Vandaag)

Hilckmann relocationThe Brabant processor is to relocate in Haps and should start to produce for the Dutch retail market in 2017 in a €25m project, says Director Kathelijne Hilckmann. At the current location in Nijmegen, the company slaughters 25,000 pigs per week. (Source, Boerderij Vandaag)

Germany

Neuland Bad Bevensen insolventThe organic meat distributor from Bad Bevensen has been placed into receivership. The company distributes and controls organic meat from 110 farmers mostly south of Hamburg. It is the largest of three such concerns distributing Neuland organic meat. (Source, AFZ)

MarketsDue to the ending of the holiday season in some regions of Germany, combined with lower temperatures, the market for pork cuts is only getting minor impulses. Sales are still below expectations, although slightly higher than last week. Achievable prices are still far too low for traders and slaughter facilities and the lack of any margin continues to cause problems. Despite low prices for pork cuts, the market remains roughly balanced and the recommended price only eased by €c1 per kg. (Source, AMI)

France

The new modelMany charcuterie products sold in French supermarkets are processed with imported pig meat from Germany or Spain, specifically imported legs. French pigs are among the dearest in Europe and struggle to compete on a global market with German and Spanish pig meat. Consumption in France is maintained thanks to low prices offered by French retailers who sell pig meat not to make profit but to attract shoppers into store. This strategy is slowly leading French consumers to buy clothes made in India, house equipment made in China and food from pizzerias; France has become the second market for pizzas behind USA…

Pork in canteensThe Dijon court rejected the appeal against a decision for menus without pork in Châlons-sur-Saône social canteens. The court decided that access to all users of school canteens, including Muslims, was not restricted. A legal procedure on the background content of the debate has been initiated by the League of Legal Defense of Muslims and will be pleaded in a few months. A member of French Parliament suggests solving the issue by to imposing a vegetarian option at every meal.

MarketsPigs: The first quotation session of the week took place on Tuesday at Plérin. Concerning the market, there was no change at the beginning of week, with good supplies remaining. According to “Marché du Porc Breton”, the bank holiday on 15 August didn’t affect trade.Piglets: According to “Marché du porc Breton”, Danish exports increased by 10% (550,000 piglets) in the first half of the year, 54% would have been sent to Germany and a further 36% destine for Poland.Cuts: According to “Marché du porc Breton”, the latest figures distributed by the European Commission confirm the loss of attractiveness of origin “France”. EU exports increased by 1.82% from January to May compared with the same period in 2014. The increase was driven by dynamism of Spanish (+33% to 182,314 tonnes) and German sales (+10% to 289,268 tonnes) and to stability in the Netherlands. In contrast, Danish sales decreased by 4%, Polish sales by 28% and French sales by 22% to 78,672 tonnes.

Spain

Switzerland

Micarna buys Maurer SpeckThe acquisitive Migros subsidiary has taken over the speck manufacturer based in Flüh. Maurer, a 40-year-old family business. (Source, AFZ)

Hungary

Kometa investsThe major Hungarian processor has completed a €2.3m investment in the Kaposvár plant. In 2014, the Italian-owned company posted losses of €500,000 and has cumulated debts of €38.6m. It employs 643 people and was rescued in 2013 with an injection of €6.3m from the Kaposvár municipality. Kometa exports 50% of its production, mainly to Southern Europe and the Balkans. (Source, Kometa)

Russia

Pig numbers in Chelyabinskaya reach historical highAccording to the Ministry of Agriculture report in Chelyabinskaya on 18 August, the total pig population in the oblast totalled 580,000 pigs. At this level, this is the highest number of pigs recorded in the oblast and 162,000 more pigs compared with a year ago. Pork production in the oblast during January-July totalled 50,000 tonnes, up 28% compared with 2014 results. Major producers in this oblast are Agrofirma Ariant and Zdorovaya Ferma (Healthy Farm). (Source, meatinfo.ru)

ASF threatens pig breeding developmentMiratorg Agribusiness Holding may cancel its construction project in Kurskaya oblast due to the threat of ASF. The project involves construction of 60 pig farms with a production capacity of 364,000 tonnes of pig meat. The cost of the project is RUB100b ($1.5b). The official cause of cancellation of the project is the increased threat of ASF, during July Rosselkhoznadzor registered four outbreaks in the region. Miratorg says Rosselkhoznadzor does not take sufficient measures to eliminate the risk of the disease. (Source, pigua.info)

Ukraine

Lower pig populationAccording to the Ukrainian State Statistic Service, as of 1 August, the pig population in Ukraine totalled 7,724,300 pigs, down 3.3% or 265,900 pigs on the year. (Source, Anyfoodanyfeed.com)

Vietnam

New ‘safe’ pork chainVissan, Vietnam’s pork leader, de Heus, a Dutch consultancy and Fresh Studio Innovation are teaming up to select 50 pig farms in Dong Nai province to create a high health pork supply for the neighbouring city of Saigon, using Dutch know-how. This will provide pork with low antibiotics, limited bacterial contamination and traceability. (Source, Saigon GP Daily)

China

Increasing wholesale priceDespite the recent currency devaluation, the wholesale pork price in China recoded its 22 consecutive week-on-week price rise this week. At RMB24.74 per kg, the price was 43% higher compared with late March, when domestic prices started to recover. It is likely PEDv may hit Chinese output again and supplies may remain tight during the autumn. (Source, Meatingplace)